Metabolix Announces Fourth Quarter and Full Year 2013 Financial Results

   Metabolix Announces Fourth Quarter and Full Year 2013 Financial Results

Achieves Milestones Across Business Platforms

Provides Outlook for Priorities in 2014

PR Newswire

CAMBRIDGE, Mass., March 27, 2014

CAMBRIDGE, Mass., March 27, 2014 /PRNewswire/ --Metabolix, Inc. (NASDAQ:
MBLX), an innovation-driven performance biomaterials company delivering
sustainable solutions to the plastics and chemicals industries, today reported
financial results for the three months and full year ended December 31, 2013.

Recent Highlights:

  oPresented data demonstrating use of Metabolix PHA biopolymers as a
    performance and process enhancing additive in PVC and PLA applications
  oLaunched Mvera B5011, a new film grade resin that allows for production of
    highly transparent compostable film and bags
  oAchieved technical milestones for production of PHA in latex form with
    target applications in biobased, biodegradable barrier coatings for paper
    and cardboard
  oDemonstrated use of second generation cellulosic sugars as feedstock for
    PHA biopolymer and biobased chemical products
  oAchieved significant increase in yield in microbial strains used to
    produce bioacrylic from either corn sugar or second generation cellulosic

"We accomplished several milestones across our business platforms during the
fourth quarter of 2013 and early 2014," said Joseph Shaulson, president and
CEO of Metabolix. "By intensifying our commercialization efforts in the
performance additive space and introducing new products that extend our
footprint in latex and film applications, we are creating opportunities to
develop solutions matched to customer needs. At the same time, we continue to
advance our technology in biopolymers, biobased chemicals, and crop science
with the objective of building value in these platforms.

"In 2014, we will be focused on a number of key milestones tied to our
business plan," Shaulson continued. "Financing the execution of that plan is
at the top of our agenda. Selection and build-out of an intermediate-scale
(2.5 to 5 KTPA) manufacturing site for commercial production of Metabolix
biopolymers is also a high priority. In that regard, we are making excellent
progress with site selection and our goal is to have manufacturing up and
running in 2015. Of course, this is subject to securing financing for the
manufacturing site and for continued operations.

"In anticipation of commercial production, we are also sharpening our emphasis
on developing performance additive solutions that deliver the greatest
combination of value and performance to our customers. This is driving a shift
in our approach to product and application development, as we work closely
with customers from initial data demonstration, through product and process
validation, larger-scale trials and ultimately to final purchasing decisions.
We are confident in our strategy and excited by the opportunity to execute our
business plan through the balance of 2014 and 2015. Ultimately, this should
position us to move forward with longer-range plans for larger scale
manufacturing supported by customer demand for Metabolix PHA biopolymers and
create significant value for all of our stakeholders," said Shaulson.

"Today, Metabolix reported 2013 financial results consistent with our internal
expectations. We ended the year with $19.2 million in cash and unrestricted
investments, and we anticipate ending the first quarter 2014 with
approximately $10.0 million," said Shaulson. "Based on our current plans and
projections, which remain subject to numerous uncertainties, we plan to raise
$50 to $60 million over the next 12 to 15 months. The timing, structure and
vehicles for obtaining this financing are under consideration and it may be
accomplished in stages. Although we cannot guarantee the availability of
financing, our goal is to use this capital to build an intermediate-scale
specialty polymers business based on PHA biopolymer additives that serves as
the foundation for our longer-range plans and the future growth of our


Metabolix manages its finances with an emphasis on cash flow and deploys its
financial resources in a disciplined manner to achieve its key strategic
objectives and to maximize value from its technology and product portfolio.
The Company has maintained this focus and ended 2013 with $19.2 million in
unrestricted cash and investments. The Company's net cash used in operating
activities during 2013 was $26.6 million, which represents a decrease in cash
usage of $5.1 million from the $31.7 million used for operating activities
during 2012.

For 2013, the Company reported a net loss of $30.5 million, or $0.88 per
share, as compared to net income of $3.6 million, or $0.11 per share, for

Total revenue for the full year 2013 was $5.4 million, compared to $42.3
million recorded in the prior year. The year-over-year decrease was primarily
due to $38.9 million in deferred revenue that was recognized in 2012 as a
result of the termination of the Telles joint venture. Product revenue
increased by $0.9 million to $2.1 million during 2013, as compared to $1.2
million recorded during 2012. The increase is primarily attributable
tohigher biopolymer sales in 2013.

Cost of product revenue for the full year 2013 was $3.0 million, compared to
$1.4 million in the prior year. These costs include the cost of inventory
associated with product revenue recognized during the respective periods,
together with warehousing and freight costs incurred during the periods. Cost
of product revenue also includes inventory impairment charges of $0.8 million
and $0.1 million during 2013 and 2012, respectively.

Research and development expenses were $19.1 million in 2013, compared to
$23.2 million for 2012. The decrease of $4.1 million is primarily due to $2.3
million in charges incurred with a third party during 2012 for a manufacturing
demonstration agreement that the Company terminated and $1.8 million
associated with cost reductions.

Selling, general and administrative expenses were $13.7 million and $14.1
million for the years ended December 31, 2013 and 2012, respectively. The $0.4
million decrease was primarily due to a reduction in fees for patent related
activities and a reduction in litigation costs. During 2013, reductions in
employee compensation and benefit expenses as a result of the Company's 2012
restructuring were offset by $0.8 million of one-time costs associated with
the replacement of the Company's chief executive officer.

The Company reported a net loss of $8.6 million, or $0.25 per share, for the
fourth quarter of 2013, compared to a net loss of $9.5 million, or $0.28 per
share, for the fourth quarter of 2012. During the fourth quarter of 2013, the
Company's net cash used for operating activities was $6.4 million, which
decreased from net cash used of $7.3 million for the comparable quarter in

Total revenue in the fourth quarter of 2013 was $0.9 million, compared to $1.4
million for the comparable quarter in 2012. The fourth quarter revenue
consisted primarily of revenue from product sales and government grants.
Biopolymer product orders of $0.5 million were shipped and billed during the
Company's fourth quarter of 2013. Revenue recognition was deferred for the
majority of these shipments in accordance with the Company's policy to defer
product revenue for the greater of 60 days or until receipt of customer
payment. The Company recognized $0.2 million in product revenue during the
fourth quarter of 2013, primarily from product shipments made during its third
fiscal quarter.

In the fourth quarter of 2013, research and development expenses were $4.7
million, and selling, general and administrative expenses totaled $4.0

The accompanying condensed consolidated financial statements have been
prepared on a basis which assumes that the Company will continue as a going
concern. However, with the exception of 2012, when the Company recognized
$38.9 million of deferred revenue from the terminated Telles joint venture, it
has recorded losses since its inception, including the fiscal year ended
December 31, 2013. The Company ended 2013 with $19.2 million in cash and
unrestricted investments and anticipates it will end the first quarter of 2014
with approximately $10.0 million. The Company's present capital resources are
not sufficient to fund its planned operations for a twelve month period, and
therefore, raise substantial doubt about its ability to continue as a going
concern. The Company will, during 2014, require significant additional
funding. While the Company plans to raise $50 to $60 million over the next 12
to 15 months, if it is unable to raise additional funds, the Company will be
forced to delay, scale back or otherwise modify its business and manufacturing
plans, sales and marketing efforts, research and development activities and
other operations, and/or seek strategic alternatives.

Conference Call Information

Metabolix management will host a conference call today at 4:30 p.m. (ET) to
discuss the results of the fourth quarter. The Company also will provide an
update on the business and answer questions from the investment community. A
live webcast of the call with slides can be accessed through the Company's
website at in the investor relations section. To
participate in the call, dial toll-free 877-709-8155 or 201-689-8881

To listen to a telephonic replay of the conference call, dial toll-free
877-660-6853 or 201-612-7415 (international) and enter pass code 13575505. The
replay will be available beginning at 7:30 p.m. (ET) on Thursday, March 27,
2014 and will last through 11:59 p.m. (ET) on Thursday, April 10, 2014. In
addition, the webcast will be archived on the Company's website in the
investor relations section.

About Metabolix

Metabolix, Inc. is an advanced biomaterials company that is well positioned to
address growing market demand for sustainable solutions in the plastics and
chemicals industries. The Company is developing and commercializing a family
of high-performance biopolymers targeted to the markets for performance
additives, film and bag applications, and functional biodegradation.
Metabolix's biobased chemicals platform is focused on high-value segments and
applications using its novel "FAST" recovery process. The Company also is
developing a platform for co-producing plastics, chemicals and energy from
crops. Metabolix has established an industry-leading intellectual property
portfolio that, together with its knowledge of advanced industrial practice,
provides a foundation for industry collaborations.

For more information, please visit (MBLX-E)

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The forward-looking statements in this release do not constitute guarantees of
future performance. Investors are cautioned that statements in this press
release which are not strictly historical, including, without limitation,
statements regarding the Company's business plans and strategies; expectations
for establishing commercial PHA biopolymer manufacturing; expected market
demand and commercialization plans for the Company's PHA biopolymer products;
expected future financial results and cash requirements; plans for obtaining
additional funding; plans and expectations that depend on the Company's
ability to continue as a going concern; and expectations for future research,
product development and collaborations constitute forward-looking statements.
Such forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
anticipated, including the risks and uncertainties detailed in Metabolix's
filings with the Securities and Exchange Commission, including its 10-K for
the year ended December 31, 2012 filed on March 28, 2013. Metabolix assumes no
obligation to update any forward-looking information contained in this press
release or with respect to the announcements described herein.

Metabolix Inquiries:

Lynne H. Brum, (617) 682-4693,


(in thousands, except share and per share data)
                          Three Months Ended          Twelve Months Ended
                          December 31,                December 31,
                          2013          2012          2013          2012
Revenue from
termination of ADM      $ -           $ -           $ -           $ 38,885
Product revenue      191           754           2,067         1,211
Grant revenue        619           556           2,490         1,971
Research and         -             -             618           -
development revenue
License fee and      80            87            219           249
royalty revenue
    Total revenue         890           1,397         5,394         42,316
Costs and expenses:
Cost of product      814           618           3,026         1,426
Research and         4,681         7,195         19,127        23,177
development expenses
Selling, general,
and administrative        4,015         3,104         13,743        14,110
    Total costs and       9,510         10,917        35,896        38,713
    Income (loss) from    (8,620)       (9,520)       (30,502)      3,603
Other income, net:
Interest income, net      8             22            51            124
Other expense, net        (15)          (18)          (55)          (97)
    Total other income    (7)           4             (4)           27
    (expense), net
    Net income (loss)   $ (8,627)     $ (9,516)     $ (30,506)    $ 3,630
Net income (loss) per
    Basic               $ (0.25)      $ (0.28)      $ (0.88)      $ 0.11
    Diluted             $ (0.25)      $ (0.28)      $ (0.88)      $ 0.11
Number of shares used
in per share
    Basic                 34,578,636    34,304,118    34,471,301    34,217,298
    Diluted               34,578,636    34,304,118    34,471,301    34,279,779

(in thousands)
                                                  December 31,    December 31,
                                                  2013            2012
    Cash, cash equivalents and short-term       $ 19,209        $ 43,773
    Inventory                                     4,074           3,204
    Other current assets                          1,948           1,978
    Restricted cash                               619             594
    Property and equipment, net                   793             1,358
    Long-term investments                         -               2,508
    Other assets                                  95              95
        Total assets                            $ 26,738        $ 53,510
Liabilities and Stockholders' Equity
    Accounts payable and accrued liabilities    $ 5,471         $ 4,752
    Short-term deferred revenue                   669             1,067
    Current portion of deferred rent              55              165
    Long-term deferred revenue                    -               -
    Other long-term liabilities                   145             186
        Total liabilities                         6,340           6,170
        Total stockholders' equity                20,398          47,340
        Total liabilities and stockholders'     $ 26,738        $ 53,510

(in thousands)
                                             Year Ended December 31,
                                             2013        2012        2011
Cash flows from operating activities
Net income (loss)                          $ (30,506)  $ 3,630     $ (38,785)
Adjustments to reconcile net income
(loss)to cash used in operating
Depreciation                                928         1,298       1,507
Charge for 401(k) company common stock       397         408         529
Stock-based compensation                     3,193       3,807       4,633
Inventory impairment                         818         138         -
Changes in operating assets and
       Deferred revenue                      (398)       (37,791)    1,333
       Inventory                             (1,688)     (3,342)     -
       Other operating assets and            608         116         (948)
             Net cash used in operating      (26,648)    (31,736)    (31,731)
Cash flows from investing activities
Purchase of property and equipment           (373)       (392)       (895)
Proceeds from sale of equipment              -           12          -
Change in restricted cash                    (25)        28          -
Purchase of investments                      (16,635)    (58,933)    (107,477)
Proceeds from sale and maturity of           36,821      84,303      99,464
short-term investments
             Net cash provided by (used      19,788      25,018      (8,908)
             in) investing activities
Cash flows from financing activities
Proceeds from options exercised              14          19          74
Proceeds from public stock offering, net     -           -           49,333
of issuance costs
             Net cash provided by            14          19          49,407
             financing activities
Effect of exchange rate changes on cash      (28)        (6)         (17)
and cash equivalents
Net increase (decrease) in cash and cash     (6,874)     (6,705)     8,751
Cash and cash equivalents at beginning of    14,572      21,277      12,526
Cash and cash equivalents at end of        $ 7,698     $ 14,572    $ 21,277

SOURCE Metabolix, Inc.

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